Us market - time for a correction

The first trading day of the year and it doesn't look good, the situation is much worse in Europe.

I hope I am wrong on this, because I am long AXP , long KO and long CSCO , this ideea being more of a hedge position for me.

Let's look at what happened before the last 2 big corrections. The MACD was shouting out to us that things are not looking good. The three bearish divergences I outlined are all class A, that is the most powerful divergence. After a strong rally since the last divergence, we have another setup, outlined on the chart. Big support is 177, but it would be great if we would stop at 181, this case showing the strenth of the bulls.

The situation is the same in Europe, bearish divergences everywhere, I closed out all my positions, including the Spanish long i called 2 weeks ago which worked very well.

I agree totally. SPX has breached key signal MA on weekly. That means we will go down to the midline of bollinger band.. 20 day moving average at the very least. On daily this is confirmed as we have broken 10 day MA. Financials will be brought down with them. After that, there may be a small bounce off 20 day, then I think more selling down to test 50 day. This market is not solid like a rock, it is vulnerable and once the selling begins, it could be very aggressive down, something most people have not seen in a long while, and conditioned that it cannot happen. This is a time to sell and take profits or short and be patient. Us markets, like most world markets, are being kept artifically high, and soon, the market finds real value and real valuation, regardless of manipulation. Your graph is an excellent picture of what is going to happen.